EUR/JPY Price Forecast: Falls to near 182.00 amid prevailing bearish bias

• EUR/JPY may fall toward the eight-month low of 179.37, with further support at 175.70.
• The 14-day Relative Strength Index at 37 signals persistent downside momentum.
• The currency cross could rise toward its nine-day EMA at 183.16.

EUR/JPY depreciates after two days of gains, trading around 182.10 during the Asian hours on Thursday. The currency cross is maintaining a bearish near-term bias as it holds beneath both the nine-day and 50-day Exponential Moving Averages (EMAs).

The EUR/JPY cross is retreating from recent highs and remains capped by these overlapping EMA barriers, while the 14-day Relative Strength Index (RSI) around 37 suggests persistent but not extreme downside momentum after the latest pullback.

The EUR/JPY cross may retest the initial support at the eight-month low of 179.37, reached on August 3. Further support lies at the nine-month low of 175.70.

On the upside, the EUR/JPY cross could rise toward the nine-day EMA at 183.16, followed by the 50-day EMA at 184.71. Further advances above these moving averages would cause a bullish emergence and support the currency cross to explore the region around the all-time high of 187.95, which was recorded on April 17.

Eurozone resilience tempers calls for fresh ECB tightening

Strategists at BNY Mellon highlight that recent data show “growth defies gloom,” with Europe’s latest PMIs generally surprising to the upside and pushing back against immediate stagflation fears. They argue that while this resilience is clearly welcome, it is “not a clean invitation for the ECB to tighten again,” warning that “another hike risks turning a nascent recovery into a policy-induced slowdown” for the Eurozone economy and regional assets.

(The technical analysis of this story was written with the help of an AI tool. Know more.)